Resale / DICDL policy Table 6
What it costs to sell on a government allotted plot
Selling a plot allotted by the government development company costs 20 per cent of its market value if you have held it less than five years. That is four times the stamp duty on an ordinary sale, and it is charged on top of the stamp duty, not instead of it.
The charge falls to 10 per cent between five and fifteen years and to 5 per cent after fifteen. It is a policy charge applied by the development company rather than a tax, and it is the most expensive single charge documented anywhere on this site. Conditions on sub-division and on surrender are set out below.
Under 5 years, 20 per cent5 to 15 years, 10 per centOver 15 years, 5 per centLast verified: 4 August 2026
01The cost of selling early
Sets what an allottee pays DICDL to sell on an allotted plot. This is the resale cost inside DICDL land, and it is steep in the early years.
This is the single most expensive charge documented anywhere on this site, and it is not a tax. It is a policy charge the development company applies to plots it allotted, and it exists to discourage people from taking an allotment and flipping it.
The fee for selling on a government allotted plot falls the longer you have held it. In the first five years it is 20 per cent of the market value, which is four times the stamp duty on an ordinary sale.
| How long the plot has been held | Transfer fee | On a plot worth one crore, Rs. |
|---|---|---|
| Held less than 5 years | 20% | 20,00,000 |
| Held more than 5 years and less than 15 | 10% | 10,00,000 |
| Held more than 15 years | 5% | 5,00,000 |
02How it compares with an ordinary sale
Set the 20 per cent against the numbers everywhere else on this site. Stamp duty on an ordinary sale is 4.9 per cent and the registration fee is 1 per cent, so a normal transfer of privately held land costs 5.9 per cent of the government valuation. Selling an allotted plot in its first five years costs 20 per cent of market value to the development company, and the stamp duty and registration fee are still payable on top.
After fifteen years the transfer fee falls to 5 per cent, which is roughly the same order as the statutory charge. The schedule is doing exactly what it looks like it is doing.
03The conditions attached
Where the allottee applied at the time of allotment for sub-transfer of plots, no transfer charge is payable for the first transfer of the sub-divided plot. Where sub-transfer was not declared at allotment, sub-transfer cannot exceed 50% of the original land allotment. On surrender, the allotment price paid by the allottee is FORFEITED and vacant possession must be handed back in the original condition with all dues, taxes and levies paid.
Two of those are worth restating. If you did not declare at the time of allotment that you intended to sub-divide and transfer parts of the plot, you cannot later sub-transfer more than half of it. And on surrender, the allotment price already paid is forfeited and the land must be handed back in its original condition with all dues cleared.
Record SIR-ALLOT-03. Source: land_allotment_policy.pdf page 26, Table 6 Transfer Charges. Statutory basis: DICDL Land Allotment Policy, 2016 as amended 16-02-2019, section 2.10 and Table 6. Data class OFFICIAL. Last verified: 4 August 2026.
The words on this page, in plain English
- Allotment
- A plot sold or leased directly by the government development company rather than bought from a private owner.
- DICDL
- Dholera Industrial City Development Limited, the government owned company that allots land inside the industrial city area.
- Market value
- Not the price on the street. In this context it is the value the government calculates from the jantri, and it is what the tax is charged on.
- Premium
- A one time payment to the government to lift a restriction on the land, most often to convert new tenure land to old tenure.
- Special Investment Region, SIR
- An area notified under the Gujarat Special Investment Region Act 2009 and governed by a development authority rather than by the ordinary local body.